Trust Services

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
2wendyliu
Posts: 5
Joined: Thu Aug 15, 2019 9:51 pm

Re: Trust Services

Post by 2wendyliu » Sun Oct 06, 2019 10:24 am

Ditto to NewMoneyMustBeSmart, we have also decided that "directed" corporate trustee is the way to go. And for that the state of South Dakota seems to have the most favorable laws/environment. Not only do directed trustees stay out of your important decisions, they usually charge fees based on duties performed instead of a percentage of the trust asset.

South Dakota Trust Company works with trust settlers and beneficiaries directly - https://www.sdtrustco.com/sdtc-philosophy

National Advisors Trust Company South Dakota Chapter partners with financial advisors - https://www.nationaladvisors.com/servic ... uth-dakota

robandjeanne
Posts: 33
Joined: Thu Mar 28, 2019 11:59 pm

Re: Trust Services

Post by robandjeanne » Sun Oct 13, 2019 2:31 am

When you decouple and go with your own RIA does your RIA insist on having bonds and international investments? Does your RIA have a goal of matching VTI, and if not does he estimate how far below VTI he will be.How do you handle the issue of your RIA predeceasing you? When i last checked with Schwab, they will do the admin portion for a very low fee, but only out of Delaware. Is anyone concerned with an ST like Schwab (or others in DE, SD, and NV) who insists on changing the situs to a different state? My lawyer seemed alarmed because the Trust was written in VA, but now the laws of another state he's unfamiliar with will apply.

robandjeanne
Posts: 33
Joined: Thu Mar 28, 2019 11:59 pm

Re: Trust Services

Post by robandjeanne » Wed Oct 16, 2019 8:39 pm

We found a Successor Trustee who will do index investing (VTI) with all our future portfolio investments. The only issue is they are in SD and we are in VA. I'm not sure if this is a concern, since our Trust says the situs can be moved. Of course since I've only met this potential ST on the phone and via emails, I have no real idea how bona fide they are. The firm is Wealth Advisors Trust Company in Rapid City, SD. Anyone know about them or know how to get an objective opinion on how good and honest they are? We had to go through at least a dozen STs to find one willing to do bogle style index investing, with almost all local outfits insisting on a lot of bonds and international investments, I wonder why SD based Successor Trustees seem willing to do what many of us want?

2wendyliu
Posts: 5
Joined: Thu Aug 15, 2019 9:51 pm

Re: Trust Services

Post by 2wendyliu » Thu Nov 07, 2019 1:13 pm

Since my trust attorney only deals with Nevada trusts and not South Dakota trusts, I had to take a closer look at the pros and cons of either. I found this article, though a few years old, to be helpful in summarizing the main points when it comes to dynasty trust offering asset protection - https://www.thewealthadvisor.com/articl ... ust-states

The following two paragraphs copied from a trust lawyer's blog point out two areas that favor Nevada over South Dakota:

The best protection is to set this structure up far in advance of any creditor problem. This is because each state has a statutory waiting period until the assets are protected. You also don’t want to get caught in the snare of a fraudulent transfer. A court could consider the transfer to a DAPT (Domestic Asset Protection Trust) fraudulent if you transferred property to the trust after the threat of a creditor action or lawsuit has arisen. Each state has its own statutory waiting period from the date the asset is transferred to the DAPT and when the asset is protected from a creditor’s claim. For example, Nevada’s statutory waiting period is two years.

Nearly all of the states that allow for DAPTs also have exception creditor statutes. These statutes protect certain classes of creditors by allowing them access to a DAPT’s assets. One common exception creditor is a divorcing spouse. There is one state that doesn’t have exception creditors and that is Nevada.

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FIREchief
Posts: 3575
Joined: Fri Aug 19, 2016 6:40 pm

Re: Trust Services

Post by FIREchief » Thu Nov 07, 2019 3:42 pm

robandjeanne wrote:
Wed Oct 16, 2019 8:39 pm
We found a Successor Trustee who will do index investing (VTI) with all our future portfolio investments.
Did they put this in writing?
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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